Stocks in Asia and on Wall Street saw significant gains overnight as the Nikkei rose 1.4% in Japan, the Hang Seng climbed 1.5% in Hong Kong and the Shanghai Composite was up by 0.1% by the end of the session. Despite a Japanese economy that contracted more than expected in the first quarter, US Treasury yields continued to fall to six-week lows, helping the yen to strengthen.
On Wall Street, there was a surge to all-time highs due to milder US inflation which led to expectations of two interest rate cuts from the Federal Reserve this year. All three major indexes reached record levels, with the S&P 500 jumping 1.2%, the Dow Jones gaining 0.9%, and the Nasdaq Composite advancing 1.4%. The dollar weakened against other currencies like the euro and sterling while gold prices began to approach record levels. Crude oil also saw gains after bouncing back from a two-month low.